Over 60% of Japanese food companies are looking to M&A to expand at home and abroad in the next 12 months.
Some 61% of manufacturers are looking at mergers and acquisition activity either domestically or in Asia.
Japan is stuck in a deflationary rut and, with weak consumer demand, there is a difficult environment for organic growth, and leading companies are looking to acquisitions to boost their vulnerable bottom lines.
Almost half of the companies said they were targeting M&A deals in Japan, while around a third said they were considering overseas deals in east Asia: China, South Korea and Taiwan. A similar number are looking at south-east Asian markets. Some companies said they were looking at deals in more than one jurisdiction.
Meanwhile, 40% of of food and daily goods firms plan to cut prices in the coming financial year – which started in March.
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By GlobalDataTwo-thirds of food makers said that retailers were asking them to increase sales incentives, in addition to price cuts.
